Advanced Search
MyIDEAS: Login

Sequential Choice And Non-Bayesian Observational Learning

Contents:

Author Info

  • THOMAS WISEMAN

    ()
    (Department of Economics, University of Texas at Austin, Austin, TX 78712, USA)

Abstract

Standard models of observational learning in settings of sequential choice have two key features. The first is that players make decisions by using Bayes' rule to update their beliefs about payoffs from a common prior. The second is that each agent's decision rule is common knowledge, so that subsequent players can draw inferences about unobserved private signals from observable actions. In this paper, I relax the first assumption while maintaining the second. In particular, I look at observational learning by players who choose between two actions using nonparametric methods for estimating payoffs. When players are identical and make inferences using the maximum score method, an informational cascade and herd must result. If players of different payoff types use kernel or nearest-neighbor methods, there are cases in which a cascade need not arise. If one does occur, it must be one in which all players, regardless of type, choose the same action. In some situations, these alternative learning rules perform better than Bayesian updating.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S0219198909002327
Download Restriction: Access to full text is restricted to subscribers.

File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=html&id=pii:S0219198909002327
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.

Volume (Year): 11 (2009)
Issue (Month): 03 ()
Pages: 285-300

as in new window
Handle: RePEc:wsi:igtrxx:v:11:y:2009:i:03:p:285-300

Contact details of provider:
Web page: http://www.worldscinet.com/igtr/igtr.shtml

Order Information:
Email:

Related research

Keywords: Observational learning; sequential choice; bounded rationality;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wsi:igtrxx:v:11:y:2009:i:03:p:285-300. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.